Rose-Hulman Institute of Technology / Department of Humanities & Social Sciences
Winter Quarter 2011 – 2012 / SV151, Principles of Economics
th
Section 3: 5 hour (11:45 – 12:35), Crapo, G-310
th
Section 4: 6 hour (12:40 – 1:30), Crapo, G-310
Professor:
Office, Phone, Fax:
Email:
Course Web Site:
Textbook:
Kevin Christ
Moench Hall, A-203D, 872-6226, 877-8909
kevin.christ@rose-hulman.edu
http://www.rose-hulman.edu/~christ/principles.htm
Mankiw, N. Gregory, Essentials of Economics, 6th ed. (2012)
Course Description
This is a 1-quarter survey course covering essential elements of economics. While there are no formal
prerequisites for this course, students should have a basic knowledge of calculus and an ability to use and
interpret data and graphs (Mankiw’s appendix to chapter 2 surveys the basic concepts). Students are
encouraged to read widely and look for items in the daily news that relate to the subject matter of this
course. The author of the textbook, Greg Mankiw, is an avid blogger. His blog is one of the most widely
read economics blogs. The course website includes links to it, as well as links to three other economics
blogs. Students who want to get the most out of this class will read these blogs regularly.
This course is required for the economics major and minor, and is suitable as a "Society and Values"
elective. Furthermore, SV151 is a prerequisite for almost all other economics courses at Rose-Hulman.
Course objectives

Improve economic literacy.

Improve critical thinking and problem solving skills by using economic models and tools of analysis to
explain economic relationships and evaluate economic arguments.

Acquaint students with central features of the U.S. economy and its position in the global economy.

Prepare students for further work in upper-level economics courses.
Broad Course Outline
Foundations (Weeks 1 to 3, chapters 1 through 7):

Fundamental concepts and economics as a social science

Demand, supply and equilibrium of individual markets

Welfare analysis of markets
Microeconomics (Weeks 4 to 6, chapters 8 through 14):

Market failures and policy implications

Production, cost, and market structure

Competitive markets and market power
Macroeconomics (Weeks 7 to 10, chapters 15 through 24):

Business cycles, aggregate output, prices, and unemployment

Long-term economic growth, saving and investment

Asset markets and the monetary system

Fiscal and monetary policy
Grading
Grade Component
Homework / Quizzes / Attendance*
Essays (3)
In-Term Exams (3)
Comprehensive Final Exam
Weight
10%
30%
30%
30%
*Policy toward attendance:

4 unexcused absences  forfeiture of H/Q/A credit

6 unexcused absences  additional 1-letter grade reduction

8 unexcused absences  failure of course
Score
90% or better
87% to 89%
80% to 86%
76% to 79%
70% to 76%
65% to 69%
60% to 65%
Less than 60%
Grade
A
B+
B
C+
C
D+
D
F
Rose-Hulman Institute of Technology / Department of Humanities & Social Science / K. Christ
Winter Quarter 2011 – 2012 / SV151, Principles of Economics (Sections 3 and 4)
General Course Policies

This syllabus provides a basic schedule and outline for the course. Students should consult the course
web site for a comprehensive and up-to-date schedule, and for important links to course material.

Class sessions will be a combination of lectures, discussion, and problem solving sessions. Course
content will come primarily from the assigned textbook, although internet content and outside readings
may be incorporated where appropriate. Some emphasis will be placed on understanding and
analyzing current economic issues. Basic PowerPoint slides used in class will be posted on the course
web site each week.

The text should be viewed as a supplement to classroom lectures and discussions. Classroom time will
be much more productive if students are familiar with textbook material (especially key terms) prior to
the class for which a reading is assigned.

Homework assignments will be posted on the course web site, and will be due on the day for which
they are posted. Solutions will be discussed in class only if time permits. Homework will be due at
the beginning of the class period for which it is assigned, and late assignments will not be accepted.

Unless explicitly informed to the contrary, students are responsible for all assigned material. This
includes material that is linked to the course web site in the “Slides and Other Links” column of the
course schedule.

The professor reserves the right to amend the course policies and schedule, and/or to add/delete items
or topics. There will, however, be no individual extra credit opportunities.

Any academic misconduct will result in a failing grade for the course.
Exams
Exams may have multiple choice and true/false/explain questions, as well as numeric, graphing, and short
answer problems. Sample exams will be posted on the course web site.
With a written explanation, approved in advance by the professor, allowance may be made for a missed
exam. In some cases, an exam may be administered at an alternate time in the Student Learning Center, or
other examinations may be weighted more heavily. Such allowances will only be made in extreme
situations (e.g., severe illness confirmed by student nurse or a doctor) or in the case of pre-approved
Institute-sponsored events. The final examination must be taken at the assigned time.
Essays
During the term, students will write three short essays on specific topics to be announced at a later
date. These essays will be due on specified dates during the term and will be returned, with
comments, to students. Final versions of all three essays will be due on Monday, February 13.
Rose-Hulman Institute of Technology / Department of Humanities & Social Science / K. Christ
Winter Quarter 2011 – 2012 / SV151, Principles of Economics (Sections 3 and 4)
Tentative Course Schedule
†
All chapter references here are to the 6th edition of the Mankiw text. If you are using an earlier edition, you
still are responsible for the content of the chapters that are listed here on the days for which they are listed.
Date
Week 1
Week 2
Week 3
Week 4
†
Topic
M
T
11/28
11/29
Foundations
Foundations
R
F
M
T
R
F
M
T
R
F
M
T
12/1
12/2
12/5
12/6
12/8
12/9
12/12
12/13
12/15
12/16
12/19
12/20
Economics as a Social Science
Specialization and gains from trade
Demand and Supply
Equilibrium
Elasticity – Price Elasticity of Demand
Elasticity – Other Elasticities
Markets and government policy – restrictions
Markets and government policy – taxes
Welfare analysis of markets
Examination 1
Application: Taxation
Application: International Trade
Holiday Break, December 21 to January 3
R
1/5
F
1/6
Externalities
Week 5
M
1/9
Public Goods
T
1/10 Production
R
1/12 Costs
F
1/13 Competitive markets
Week 6
M 1/16 Competitive markets
T
1/17 Market power and public policy
R
1/19 Market power and public policy
F
1/20 Examination 2
Week 7
M 1/23 Introduction to macroeconomics
T
1/24 Aggregate output
R
1/26 Prices, Inflation, Deflation
F
1/27 Resource utilization / Unemployment
Week 8
M 1/30 Production and Long-Run Economic Growth
T
1/31 Savings and investment
R
2/2
Present value discounting and risk
F
2/3
Asset markets
Week 9
M
2/6
Monetary system
T
2/7
Money and inflation
R
2/9
Review / Catch up
F
2/10 Examination 3
Week10
M 2/13 Aggregate Demand and Supply
T
2/14 Monetary Policy
R
2/16 Fiscal Policy
F
2/17 Current Debates
Review Session: Saturday, February 18, time and place to be determined
Final Examination: Monday, February 20 at 8:00 a.m.
Reading Assignment
Chapter 1
Chapter 1
Chapter 2 Appendix
Chapter 2
Chapter 3
Chapter 4 (65 – 76)
Chapter 4 (77 to end)
Chapter 5 (89 – 97)
Chapter 5 (97 to end)
Chapter 6 (111 – 121)
Chapter 6 (121 to end)
Chapter 7
Chapter 8
Chapter 9
Chapter 9
Chapter 10
Chapter 11
Chapter 12 (235 – 241)
Chapter 12 (241 to end)
Chapter 13 (255 – 265)
Chapter 13 (265 to end)
Chapter 14 (275 – 289)
Chapter 14 (290 to end)
Chapter 23, (487 – 490)
Chapter 15
Chapter 16
Chapter 20
Chapter 17
Chapter 18
Chapter 19 (393 – 400)
Chapter 19 (400 to end)
Chapter 21 (435 – 443)
Chapter 21 (443 to end)
Chapter 22
Chapter 23 (490 to end)
Chapter 24 (525 – 535)
Chapter 24 (535 – 541)
Chapter 24 (541 to end)
Changes may be announced in class and posted on the course website. The schedule on the course website will be the
most up-to-date schedule for the course.